Canadian Solar Inc. (NASDAQ:CSIQ)

Q:Hey Chip,
Good call on CSIQ; you really nailed it!
Personally, I love the company and have been jumping in and out of it with mixed results. I really don’t know what I’m doing when it comes to stock investing (I’ve lost money almost every trade I’ve ever made), but I really want to get back into CSIQ now. What are your thoughts on the company – from an investment perspective? Would you invest your own money at this point in time?

Any advise is greatly appreciated!

A: Thanks for the compliment. It looks like CSIQ could be bottoming here but there is a little bit of downside risk as the stock could try and test its 200-day moving average at around $8 before resuming the Uptrend. Sometimes within Downtrends you get these pauses, and then a stock could either continue to go down or start a new rally. Trend trading waits for some confirmation that a rally can resume before issuing a buy signal. Just look at a few weeks ago, from 6/24 to 7/1 when the stock looked like it was flattening after dropping from $16 to $12. But it wasn’t done. The stock fell another 2 points to under $10. Notice also SmarTrend kept it in a Downtrend the whole time. So unless you are feeling aggressive and ok risking $2 more to the downside, you could benefit from a little patience just to be sure.